Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, exports of U.S. goods to Japan will tend to:
a. rise

The aggregate-demand curve shows the quantity of goods and services that firms choose to produce and sell at each price level.

a. true b. false

Which of the following would lead GDP to overstate economic welfare?

A) the existence of home-cooked meals B) restaurant workers that under-report tip income C) a self-employed CPA who takes a longer than normal vacation D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution